Crude futures closed at their lowest level in five weeks, pressured by a third weekly rise in U.S. gasoline supplies and reductions in growth forecasts for global oil demand this year.

Crude for June delivery dropped 84 cents, or 1.2%, to $68.69 a barrel, trading as low as $68.20 during the session. The contract hasn't traded or closed at these levels since early April.

The Energy Department said motor gasoline inventories rose 1.3 million barrels for the week ended May 12 to total 206.4 million. They are still 3.5% below the year-ago level, the government data showed. Crude stocks fell 100,000 barrels to total 346.9 million barrels -- 4.7% above the year-ago level. See Futures Movers.

On the oil service index, Transocean Inc.
RIG, +1.99%
said it has been awarded contracts for three of its semisubmersible rigs, the Sovereign Explorer, Transocean Amirante and Sedco 712, worth an estimated $552 million.

The news was not enough to stem stock's slide, which fell 2% to $80.12 as part of a broad sector decline.

Halliburton Co.
HAL, +1.66%
said its shareholders have approved increasing the number of authorized shares of common stock to 2 billion from 1 billion, and that the company has set June 23 at the record date of its stock split. The new shares will be distributed July 14.

Halliburton shares lost 1.7% to $73.76.

The Philadelphia Oil Service Index has fallen almost 11% since last Wednesday. Analysts at Merrill Lynch said that while the sector is likely to continue falling in the near future on lower crude and natural gas prices, they're still bullish on the sector's long-term strength.

"We remain bullish overall as we see growth being sustained by international activity," said analyst Alan Laws in a note to clients.

Intraday Data provided by SIX Financial Information and subject to terms of use.
Historical and current end-of-day data provided by SIX Financial Information. Intraday data
delayed per exchange requirements. S&P/Dow Jones Indices (SM) from Dow Jones & Company, Inc.
All quotes are in local exchange time. Real time last sale data provided by NASDAQ. More
information on NASDAQ traded symbols and their current financial status. Intraday
data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. S&P/Dow Jones Indices (SM)
from Dow Jones & Company, Inc. SEHK intraday data is provided by SIX Financial Information and is
at least 60-minutes delayed. All quotes are in local exchange time.